🏡 First-Time Homebuyer Myths: What You Need to Know

birdsonggroup
Apr 4, 2025
3 min read

Buying your first home is an exciting milestone, but it can also feel overwhelming—especially with all the myths floating around about the process. If you've been hesitant to take the leap into homeownership because of things you've heard, it's time to separate fact from fiction.

Let’s debunk some of the most common first-time homebuyer myths and set the record straight!

Myth #1: You Need a 20% Down Payment 💰🚫

Reality: You don’t need to save 20% to buy a home!

Many first-time buyers think they have to wait until they have 20% of the home price saved up, but in reality, there are many loan options that require as little as 3% to 5% down.

✔ FHA loans allow as little as 3.5% down

✔ Conventional loans offer options as low as 3% down

✔ VA and USDA loans even provide zero down payment options for qualified buyers

💡 Pro Tip: A bigger down payment can reduce your monthly mortgage, but it’s not a dealbreaker if you don’t have 20% saved.

Myth #2: Your Credit Has to Be Perfect 🔢✨

Reality: You don’t need a perfect credit score to buy a home!

While a higher credit score can get you better loan terms, there are loan programs for buyers with fair or even lower credit scores.

✔ FHA loans allow scores as low as 580 (or even 500 with a larger down payment)

✔ Conventional loans typically require 620 or higher

✔ Lenders also consider your income, debt, and savings—not just your credit score

💡 Pro Tip: If your score isn’t great, work on improving it by paying bills on time and reducing credit card balances.

Myth #3: Renting is Always Cheaper Than Buying 💸🏡

Reality: Buying can be more affordable in the long run!

Yes, renting may seem cheaper upfront, but homeownership builds equity—meaning you’re investing in your future rather than paying your landlord’s mortgage.

✔ Monthly mortgage payments can sometimes be equal to or lower than rent

✔ Homeowners build equity over time, while renters don’t

✔ Mortgage rates remain fixed (with a fixed-rate loan), while rent usually increases every year

💡 Pro Tip: Compare rental vs. mortgage costs in your area to see which makes more financial sense for you.

Myth #4: You Should Find a Home Before Getting Pre-Approved 🏠🔍

Reality: You should always get pre-approved first!

Shopping for a home before getting pre-approved can lead to heartbreak if you fall in love with a house that’s out of your budget.

✔ Pre-approval tells you how much home you can afford

✔ It makes your offer stronger when competing with other buyers

✔ It saves time by narrowing down your home search

💡 Pro Tip: Connect with a trusted lender early in your home search to get pre-approved before house hunting.

Myth #5: The Homebuying Process is Too Complicated 🤯📑